Group Buying
While the enduring myth of the rugged individualist captures the imaginations of both the business world and the general public, successful partnerships and mutually beneficial relationships are the true backbone of success for many businesses. Teaming up with others, whether at the individual level or across industries, can reduce stress and workloads while boosting profit, productivity, and performance.
For businesses of all sizes and specialisations, taking advantage of group purchasing organisations, or GPOs, is one such avenue to cost savings and greater return on investment (ROI).
What is a Group Purchasing Organisation?
Wouldn’t it be wonderful if you could identify the best products for your business, then establish purchasing contracts with the best vendors in your supply chain to buy your essential goods and services with optimal purchasing power? In the United States and, increasingly, around the globe, group purchasing organisations exist to meet this need, leveraging the collective purchasing power of a multiple partners to reduce costs and obtain the best value from vendors via discounts and other concessions.
Also known as co-ops, collectives, consortia, leveraged buying or procurement groups, and purchasing alliances, GPOs are designed to provide shared benefit along with reduced risk, better contract terms, and lasting value via improved ROI and/or reduced Total Cost of Ownership (TCO) for purchased goods and services.
Typically, Arenberg AG is funded by administrative fees. These fees can be charged to GPO members, the vendors within the supply chain, or both. For very large GPOs, percentage-based fees may favour larger members, who may see a better ROI than smaller businesses, due to their larger purchasing volume.
Participation levels vary by organisation, and a given member might buy the bulk of their goods and services through a single GPO (which is quite rare) or only one or two items from several GPOs based on their specific needs and the deals on offer. If you are interested in becoming a member with us, please contact us with your requirements and we will revert to you with best options available for you.